BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of )

) Docket DOT-OST-2013-0072

2013/2014 U.S.-Brazil Combination )

Frequency Allocation Proceeding )

)

SUPPLEMENT OF US AIRWAYS, INC. TO APPLICATION FOR AN

EXEMPTION AND FREQUENCY ALLOCATION

Communications with respect to this document should be addressed to:

Howard Kass

Vice President, Legal and Government Affairs

Benjamin T. Slocum

Director, Legal and Government Affairs

US Airways, Inc.

1401 H Street, NW, Suite 1075

Washington, DC 20005

(202) 326-5153

howard.kass@usairways.com

benjamin.slocum@usairways.com

DATED: April 24, 2013
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TABLE OF CONTENTS

Page

OVERVIEW .......................................................................................................... 1

I. INTRODUCTION ....................................................................................... 2

II. THE CHARLOTTE-SAO PAULO SERVICE THAT BOTH US AIRWAYS 

AND THE DEPARTMENT WORKED HARD TO ACHIEVE COULD BE 

INTERRUPTED WITHOUT DEPARTMENT ACTION ............................... 5

III. MAINTAINING CHARLOTTE-SAO PAULO SERVICE AND STARTING 

NEW PHILADELPHIA-SAO PAULO SERVICE SHOULD BE THE 

DEPARTMENT’S TOP PRIORITY ............................................................ 6

Charlotte-Sao Paulo................................................................................... 6

Philadelphia-Sao Paulo............................................................................ 12

IV. THE SELECTION CRITERIA ESTABLISHED BY THE DEPARTMENT IN 

OTHER PROCEEDINGS CLEARLY SUPPORT APPROVAL OF US 

AIRWAYS’ APPLICATION...................................................................... 16

V. AN AWARD TO US AIRWAYS WILL BEST SERVE TRAVELERS AND 

SHIPPERS............................................................................................... 20

VI. CONCLUSION......................................................................................... 21
BEFORE THE

DEPARTMENT OF TRANSPORTATION

WASHINGTON, D.C.

)

In the matter of )

) Docket DOT-OST-2013-0072

2013/2014 U.S.-Brazil Combination )

Frequency Allocation Proceeding )

)

SUPPLEMENT OF US AIRWAYS, INC. TO APPLICATION FOR AN

EXEMPTION AND FREQUENCY ALLOCATION

Pursuant to 49 U.S.C. 40109, Subpart C of the Department of 

Transportation’s (“Department”) Rules of Practice and the Department’s April 12, 

2013, Order Instituting Proceeding, US Airways, Inc. (“US Airways”)1 submits this 

supplement to its previously-filed application in Docket DOT-OST-2013-0046.2

Overview

The purpose of this pleading is to obtain the Department’s approval of US 

Airways’ request for 14 unrestricted Brazil frequencies available for use beginning 

October 1, 2014. US Airways will use seven of these frequencies to continue to 

benefit consumers flying on its new Charlotte-Sao Paulo service, which will 

commence June 8, 2013, using seven frequencies leased temporarily from United. 

The other seven frequencies will be used to institute service from Philadelphia, a 

new gateway to Brazil in the Northeastern United States.

 1 Common names of carriers are used.

2 Application of US Airways, Inc. for an Exemption and Frequency Allocation, Docket DOT-OST-2013-0046, 

March 4, 2013.
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This pleading is organized into five sections that, taken as a whole, 

demonstrate why the Department should approve US Airways’ application.

Section I summarizes US Airways’ frequency request and its position in the 

U.S.-Brazil marketplace. Section II discusses the vested interest of consumers, 

communities and the Department in ensuring that Charlotte-Sao Paulo service 

continues. Section III details the numerous public interest benefits that will result 

from an award to US Airways for Charlotte-Sao Paulo and Philadelphia-Sao Paulo 

service. Section IV sets forth the Department’s selection criteria, and demonstrates 

how US Airways’ proposal best satisfies them. Section V and Section VI summarize 

the public interest benefits flowing from approval of US Airways’ proposals to (i) 

continue its Charlotte-Sao Paulo service beyond October 25, 2014; and (ii) begin 

new service between Philadelphia and Sao Paulo. Finally, US Airways responds to 

the specific evidentiary requirements set forth in the Department’s April 12, 2013, 

Order Instituting Proceeding (“Instituting Order”).

I. Introduction

This proceeding stems from the Department’s February 15, 2013, Notice 

Inviting Applications, which solicited expressions of interest in, among other things, 

the unrestricted Brazil combination frequencies available to U.S. carriers beginning 

October 1, 2013, and October 1, 2014. The applicants included US Airways, 

American and Delta, each of whom sought a portion of the 28 frequencies available 

to serve Sao Paulo. US Airways requested 14 of the frequencies—seven to prevent 

the cessation of its new Charlotte-Sao Paulo service, and another seven to institute 
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new Sao Paulo service from Philadelphia, a new gateway.3 American also applied 

for 14 frequencies for service from Los Angeles and Chicago. Delta requested 21 

frequencies, 14 of which are for duplicative flights from Atlanta and New York. 

Delta’s request for additional frequencies for Detroit service is to backfill frequencies 

that Delta contractually agreed to surrender in 2015, as part of its 2011 slot 

transaction with US Airways. 

Since insufficient frequencies are available to fund all the requests made in 

March 2013, the Department instituted this proceeding to evaluate proposals, and 

allocate frequencies based on which proposal will best serve the public interest. To 

support its proposed services, US Airways requests that the Department award it 14 

unrestricted combination frequencies available October 1, 2014, for operation of 

daily year-round scheduled service between (i) Charlotte and Sao Paulo; and (ii) 

Philadelphia and Sao Paulo. 

US Airways will use seven of the 14 frequencies to continue without 

interruption its daily service between Charlotte and Sao Paulo. This service will 

begin June 8, 2013, using seven frequencies leased from United and end in October 

2014 unless frequencies are awarded. Specifically, this lease will expire on October 

25, 2014, approximately eleven months before the implementation of full Open Skies 

on October 1, 2015.4

 

 3 US Airways also requested that the Department grant it an exemption permitting it to engage in the scheduled 

foreign air transportation of persons, property and mail from any point or points behind the United States via the 

United States and intermediate points to any point or points in Brazil and beyond. US Airways incorporates by 

reference information contained in its March 4, 2013, application required to demonstrate its citizenship and 

fitness for exemption authority.

4 As a result of the lease amendment, US Airways is modifying its initial frequency request set forth in its March 

4, 2013, application in Docket DOT-OST-2013-0046 and is today requesting 14 frequencies available October 1, 

2014.
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US Airways will use the other seven frequencies to commence new service to 

Sao Paulo from Philadelphia on October 1, 2014, or as soon as possible thereafter 

upon receipt of all necessary approvals from the U.S. and Brazilian governments. 

US Airways will work diligently to obtain the Brazilian Government’s approval of its 

new service. 

Finally, although US Airways and American have announced their intent to 

merge, the merger cannot be closed without several required approvals. Thus, US 

Airways and American today remain separate companies. Nevertheless, even if the 

merger closes, nonstop service between each of Charlotte and Philadelphia and Sao 

Paulo is still in the public interest and the merger does not diminish that fact. The 

Department’s focus should remain on the communities and consumers that will 

benefit from the new services. 

Merger or not, both Charlotte and Philadelphia are deserving of nonstop 

service to Sao Paulo. Both gateways are among the largest in the United States and 

would provide new options for consumers versus other gateways along the Eastern 

Seaboard including Atlanta, Newark and Washington-Dulles. Adding two new 

Eastern gateways to Sao Paulo would have a tremendous benefit for consumers, 

communities and competition.
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II. The Charlotte-Sao Paulo Service that both US Airways and the 

Department Worked Hard to Achieve Could be Interrupted without 

Department Action

That US Airways is even in a position to commence Charlotte-Sao Paulo 

service is a testament to the leadership demonstrated by the Department. In June 

2008, through hard bilateral negotiations, the Department succeeded in getting the 

carrier designation limits removed from the U.S.-Brazil air services agreement. This 

led directly to US Airways’ commencement of Charlotte-Rio de Janeiro service in 

December 2009. Subsequently, in August 2010 the Department approved US 

Airways’ lease of unrestricted Brazil frequencies from United, and temporarily 

reallocated seven unrestricted frequencies to US Airways. Upon Department 

approval, US Airways began in earnest the work required to obtain all necessary 

Brazilian regulatory and airport approvals for brand new Charlotte-Sao Paulo 

service. Despite several setbacks, with the Department’s continued support over 

this period, US Airways ultimately received the necessary approvals and a slot 

award from the Brazilian Government and Guarulhos Airport, enabling it to begin 

Charlotte-Sao Paulo service in June 2013.

Without a recent amendment to the frequency lease, US Airways could have 

lost the frequencies as early as Fall 2013. In an effort to maintain the leased 

frequencies for as long as possible, and give the Department additional flexibility in 

awarding frequencies for Charlotte service, US Airways renegotiated the lease 

termination date. However, Department action is still required or else US Airways 

will no longer have any service to Sao Paulo, and the consumers and communities 
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that rely upon Charlotte-Sao Paulo flights will lose the benefits of the service. The 

Department can avoid this result with an award of frequencies to Charlotte.

III. Maintaining Charlotte-Sao Paulo Service and Starting New PhiladelphiaSao Paulo Service Should Be the Department’s Top Priority

Charlotte and Philadelphia offer the Department a unique opportunity within 

this proceeding to preserve and add Sao Paulo service at US Airways’ two largest 

hubs, respectively. Charlotte and Philadelphia are both robust hubs that serve 

communities with strong ties to Brazil. Each will provide numerous connections for 

Sao Paulo travelers every day, to/from destinations across the United States. 

Furthermore, as new gateways, Charlotte will provide connecting passengers with

needed intergateway competition with Atlanta, while Philadelphia competes with 

gateways at Newark and Washington-Dulles. 

Charlotte-Sao Paulo

US Airways’ daily Charlotte-Sao Paulo service will commence with B767-200 

aircraft seating 200 passengers in two classes. However, at the start of the 2013-

2014 Winter Season, US Airways will upgrade this service to larger, newer A330-

200 equipment, seating 253 passengers in two classes.5

 The seating layouts of 

these aircraft are shown in Figure 1.6

 5 US Airways’ B767-200 and A330-200 aircraft have 204 and 258 total seats, respectively; however, on US 

Airways flights to/from Brazil, four seats are reserved for crew rest on the B767-200 and five seats are reserved 

for crew rest on the A330-200. US Airways is in the process of obtaining all necessary Brazilian regulatory 

approvals to implement its Charlotte-Sao Paulo equipment change effective late October 2014.

6 An overview of the amenities provided by US Airways’ state of the art A330-200 aircraft is attached as Annex A.
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Figure 1: US Airways Would Operate Frequencies Awarded to

Charlotte Using A330-200 Aircraft

The A330-200 aircraft is the newest in US Airways’ fleet, and is particularly wellsuited to long-haul service. The aircraft features lie-flat seats in Envoy class and 

comfortable leather seats in coach class, ensuring passenger comfort and 

convenience. 

Charlotte is US Airways’ largest hub, and the third largest airline hub in the 

United States. US Airways operates more than 640 daily nonstop flights from 

Charlotte to 131 destinations in the U.S., Canada, the Caribbean, Mexico and Latin 

America.7

 Over the past five years, Charlotte’s long-haul international service level 

 7 An Overview of US Airways’ Charlotte hub is attached as Annex B.
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has expanded dramatically, commencing in 2009 when US Airways started service 

to both Rio de Janeiro and Paris, France. In 2010, Charlotte received service to 

Rome, followed in 2011 by service to Dublin and Madrid. Just last month, Charlotte 

received its first flight to London’s Heathrow Airport, and will enjoy Sao Paulo service 

in June. Indeed, over the last five years, the total number of international seats 

offered by US Airways at Charlotte has increased nearly 25 percent, while total 

ASMs have increased over 50 percent.

Charlotte has proven to be an excellent gateway to Brazil. The Department 

recognized the value of US Airways’ Charlotte hub in 2009 when it awarded US 

Airways seven frequencies to serve Rio de Janeiro. The Department found that 

approval of US Airways’ Charlotte-Rio de Janeiro service would introduce service at 

a “major hub, resulting in more service options for the traveling public.” 8 The 

Department was correct—US Airways’ Charlotte-Rio de Janeiro service is highly 

successful and growing consistently, as shown in Figure 2.

 8 In the Matter of 2009 U.S.-Brazil Combination Frequency Proceeding, Order 2009-3-14, p.7
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Figure 2: Charlotte Is a Successful and Still-Growing Brazilian Gateway

Source: US Airways internal data.

The Department’s 2009 conclusions apply equally to US Airways’ new 

Charlotte-Sao Paulo service. This service will provide a compelling alternative to 

Delta’s Atlanta-Sao Paulo service, providing travelers with additional choice of 

gateways and numerous new connecting options. As shown in Figure 3, US 

Airways’ Charlotte-Sao Paulo service will provide connections to 87 U.S. points 

southbound, and 97 points northbound, increasing passenger convenience 

throughout the United States.9

 9 Connecting schedules for Charlotte are attached as Annexes C and D.
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Figure 3: US Airways’ Charlotte-Sao Paulo Service

Connects Passengers Nationwide

Connections limited to within 4 hours of GRU departure/arrival and less than 130% circuitous.

Source: US Airways’ Schedule for June 14, 2013.

Regardless of whether the US Airways-American merger is approved or not, 

the fact remains that the Charlotte gateway is a highly competitive alternative for 

many connecting passengers to Delta’s Atlanta-Sao Paulo service, generating 

considerable consumer benefits, as was already recognized by the Department 

regarding to Rio de Janeiro. Charlotte is the principle competing gateway with 

Atlanta—a fact that will not change if US Airways and American merge. 10 The 

Department should preserve this alternative to Delta’s Atlanta-Sao Paulo service. 

 10 Indeed, 90% of the traffic that Atlanta connects in both directions to Sao Paulo can also connect in both 

directions via Charlotte. (Assumes four hour maximum connect time and less than 130% circuity.)
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This compelling factor is alone sufficient to justify an allocation of seven frequencies 

for Charlotte-Sao Paulo service.

Charlotte also has strong business and commercial links with Brazil. US 

Airways’ Charlotte-Rio de Janeiro service has received strong and growing support 

from the Charlotte community. Commerce and trade with Brazil is enormously 

important to Charlotte (and North Carolina as a whole), and is valued at more than 

$1 billion. Brazilian businesses have found an excellent business climate in 

Charlotte, and seven Brazilian companies have established operations in Charlotte 

including two with their U.S. headquarters in the city.11

Finally, not only is Brazil service important to Charlotte and North Carolina, 

Charlotte-Sao Paulo service is critically important to US Airways. Since leasing the 

frequencies in 2010, it has made an enormous investment to ensure the service is 

successful, and efforts to ensure the successful inauguration of service are ongoing. 

Although US Airways looks forward to beginning the first new U.S. carrier service to 

Sao Paulo in many years, it is deeply concerned that its efforts will be thwarted by 

the loss of its leased frequencies in October 2014, to the detriment of consumers, 

communities and competition. Should Charlotte-Sao Paulo service be lost due to a 

lack of frequencies, there is no assurance US Airways can resume service even if 

frequencies become available in the future. Although infrastructure constraints at 

GRU are improving, there remains a significant possibility that US Airways would be 

unable to recover the gates, airport offices, ticketing facilities and slots needed to 

resume Charlotte-Sao Paulo service, even after Open Skies is implemented. As a 

 11 An Overview of the Charlotte business links to Brazil is attached as Annex E.
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result, to ensure that its new Charlotte-Sao Paulo service will continue, and travelers 

can enjoy the benefits of new U.S. carrier competition to Sao Paulo without 

interruption, US Airways requests allocation of seven unrestricted frequencies 

available October 1, 2014.

Philadelphia-Sao Paulo

US Airways proposes daily roundtrip nonstop service between Philadelphia 

and Sao Paulo beginning October 1, 2014, or as soon thereafter as all necessary 

approvals are obtained. For this new service, US Airways will utilize wide-body 

Airbus A330-200 aircraft, shown in Figure 1, above.

Philadelphia-Sao Paulo service is the logical and necessary next step in US 

Airways’ expansion of its Brazil services. Philadelphia is US Airways’ second largest 

hub and the second largest East Coast metropolitan area. It is US Airways’ primary 

transatlantic hub, from which US Airways operates more than 450 daily departures 

serving 117 U.S. and worldwide destinations.12 

Philadelphia is the largest U.S. hub airport without service to Sao Paulo, as 

shown in Figure 4.

 12 An Overview of US Airways’ Philadelphia hub is attached as Annex F.
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Figure 4: Philadelphia is the Largest Hub without Sao Paulo Service

* Charlotte-Sao Paulo service uses leased frequencies until October 25, 2014.

Note: Chicago includes both American and United departures.

Source: 2012 Innovata departures.

US Airways’ Philadelphia-Sao Paulo service will provide compelling 

alternatives to the connecting gateways at Newark and Washington, D.C. The 

Department has recognized the consumer benefits of allocating frequencies in a 

manner that enables both new entry and a new gateway:

For the October 2009 frequencies, we tentatively find that the 

introduction of new U.S. air carrier competition through our selection of 

US Airways and its Charlotte-Rio de Janeiro proposal, along with the 

benefits of new gateway competition...would better serve the public 

interest...
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. . .

Selection of US Airways would not only introduce new U.S. air carrier 

competition, but it would do so at an additional U.S. gateway and a 

major hub, resulting in more service options for the traveling 

public.13

The Department’s findings in 2009 with respect to Charlotte-Rio de Janeiro apply 

equally to US Airways’ proposed new Philadelphia-Sao Paulo service. US Airways’ 

Philadelphia-Sao Paulo service will provide an attractive alternative to incumbent 

services operated today at Newark and Washington-Dulles, a fact which the 

Department has already recognized.14

As predicted by the Department, Philadelphia is exceptionally well-positioned 

to serve as US Airways’ second gateway to Sao Paulo. US Airways’ Philadelphia 

hub allows it to provide increased choice for Brazil passengers throughout the 

United States. Southbound, US Airways would be able to connect 65 U.S. cities to 

Sao Paulo—16 more than Newark and 6 more than Washington Dulles. 

Northbound, US Airways would be able to connect 61 U.S. cities to Sao Paulo—15 

more than Newark and 7 more than Washington Dulles. 15 Figure 5 shows the 

numerous connections offered by US Airways via Philadelphia.16

 13 In the Matter of 2009 U.S.-Brazil Combination Frequency Proceeding, Order 2009-3-14, pp.7-8 (emphasis 

added).

14 1996 U.S.-Italy Service Proceeding, Order 96-2-35, February 21, 1996, p.5

15 Source: Friday, 6/14/2013 Innovata Schedule as of 3/4/13. 

16 Connecting schedules for Philadelphia are attached as Annexes G and H.
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Figure 5: The Strength of US Airways’ Philadelphia Hub Will Enable US 

Airways to Compete for Travelers Across the U.S.

Connections limited to within 4 hours of GRU departure/arrival and less than 130% circuitous.

Source: US Airways’ Schedule for June 14, 2013. 

US Airways’ Philadelphia hub will be especially attractive in the Northeast, with 

significantly more flights to/from the major Northeastern U.S. population centers than 

the incumbent carriers at Newark and Washington-Dulles.

Finally, Philadelphia has a large and growing business community and 

population that will strongly support US Airways’ new Sao Paulo service. 

Philadelphia is the East Coast’s second largest city, with a population of nearly six 

million, and is the sixth largest U.S. metropolitan area. It hosts the headquarters of 

twelve Fortune 500 companies as well as numerous pharmaceutical and insurance 

companies. Business ties between Philadelphia and Brazil are strong and 
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increasing. Merck and Supera Farma recently established a Brazilian joint venture, 

and Braskem S.A. (based in Brazil and one of the world’s largest plastics producers) 

established its U.S. headquarters in Philadelphia. As many more Brazilian firms 

establish bases in region, Brazil is a key element of Philadelphia’s economy which is 

increasingly dependent on international opportunities.17

The immense public benefits flowing from the introduction of a new U.S. 

gateway to Brazil—and to Sao Paulo in particular—clearly support an award of 

seven frequencies to US Airways at Philadelphia. 

IV. The Selection Criteria Established by the Department in other 

Proceedings Clearly Support Approval of US Airways’ Application

The Department has rightly observed in other proceedings involving 

allocations of international authority that, except in the most extraordinary cases, the 

public interest is best served by awarding frequencies to carriers proposing new

service from a new gateway—not by awarding frequencies to carriers proposing 

duplicative service to city-pairs already served. Consumers and communities benefit 

from new services, at new gateways which enable new connections and increased 

passenger choice. 

The Department’s decision in the recent U.S.-Colombia case is instructive. 

Only after finding a “severe” geographic imbalance in service from the U.S. to 

Colombia did the Department conclude it would be appropriate to award Continental 

frequencies for a second service between Houston and Bogota over other applicants 

proposing new gateways. The Department made quite clear that, barring 

 17 An Overview of the Philadelphia business links to Brazil is attached as Annex I.
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exceptional circumstances, its strong preference in limited-entry route cases is to 

allocate frequencies to those carriers proposing new service from new gateways:

Under other circumstances, we might not be inclined to award 

frequencies to a carrier proposing a double-daily service in a limited 

entry market in preference to other proposals for initial nonstop 

service in a new city pair market. However, given the record before 

us, reflecting the considerable geographical imbalance of U.S.-

Colombia service options, the paucity of service west of Atlanta, and 

the demand for increased service, an allocation to Continental for a 

second daily Houston-Bogota service is appropriate.18

There are no such exceptional circumstances concerning Atlanta or New York that 

would justify a departure from the Department’s traditional and well-conceived 

preference in limited-entry route cases for new service from new gateways. The 

Department already found Charlotte-Sao Paulo service to be consistent with the 

public interest when it approved the frequency lease.19 To prevent this service to a 

new gateway from being lost, the Department should first ensure that an allocation is 

made to guarantee its uninterrupted continuation. In this regard, maintaining US 

Airways’ Charlotte-Sao Paulo service with an allocation of seven frequencies should 

be the Department’s top priority. 

After meeting the public interest need of maintaining Charlotte-Sao Paulo 

service, the Department should reaffirm its preference for new services from new 

gateways. US Airways’ Philadelphia-Sao Paulo proposal should be primary. 

Philadelphia is not only the largest U.S. metropolitan area without nonstop Sao 

Paulo service; it would benefit connecting passengers and communities by providing 

an appealing alternative to other gateways, such as Newark and Washington-Dulles, 

 18 2007/2008 U.S.-Colombia Combination Frequency Allocation Proceeding, Order 2008-3-4, Docket DOT-OST2007-0006, March 5, 2008, p.13 (emphasis added)

19 Notice of Action Taken, Docket DOT-OST-2009-0003, August 2, 2010
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a key goal the Department has recognized before.20 Selection of Philadelphia for an 

award of seven frequencies will therefore achieve the multiple benefits of new 

service from a new gateway that is the largest metropolitan area without nonstop 

Sao Paulo service, while significantly increasing consumer choice of gateways, all to 

the benefit of consumers and communities.

As shown in Figure 7, Charlotte’s Brazil service would provide a close 

alternative for connecting passengers to Atlanta and Delta/SkyTeam’s Brazil service. 

Similarly, if US Airways’ merger with American closes, US Airways will become part 

of oneworld and a Philadelphia-Sao Paulo service will provide an attractive 

alternative for connecting passengers to United/Star Alliance service at Newark and 

Washington-Dulles. In both Charlotte and Philadelphia, US Airways would provide 

passengers throughout the Northeast and Midatlantic connecting opportunities via a 

new gateway and in a new alliance.21

 20 See, e.g., 1996 U.S.-Italy Service Proceeding, Order 96-2-35, February 21, 1996, p.5.

21 New York is the largest O&D city in the world and successfully supports long-haul international air services on 

its own. As such, JFK is well-suited to serve the local New York market, but infrastructure constraints make it 

less optimal as a connecting hub for traffic. 
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Figure 7: Charlotte and Philadelphia Add Competitive New Gateways for 

U.S.-Brazil Service

The Department should only consider a frequency allocation for purely 

duplicative services that would be operated by a single carrier (such as Delta’s 

proposal to add same carrier second daily flights at Atlanta and New York) after 

accommodating needs for frequencies to preserve existing services and proposals 

to serve new gateways; and after U.S. cities that already have Sao Paulo nonstop 

service operated by another U.S. or foreign carrier receive an alternative service 

option. As the Department found in the U.S.-Colombia case, only in the most 
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exceptional circumstances should frequencies be awarded for duplicative services at 

the expense of services to new gateways.22 

Simply put, these “exceptional circumstances” do not exist in this case, and 

an award to Delta for duplicative service at New York and Atlanta will not enhance 

passenger choice and competition in the same way and will therefore be of less 

benefit to consumers and communities. 

V. An Award to US Airways Will Best Serve Travelers and Shippers

As stated in its initial application,23 US Airways’ proposal to serve Sao Paulo 

provides a unique combination of benefits, including:

• Daily year-round Sao Paulo service from both Charlotte and Philadelphia—

US Airways’ largest and second largest hubs; 

• Continued daily year-round service from Charlotte—one of the largest airline 

hubs in the world offering more than 640 daily departures to 136 destinations 

in the United States, Canada, the Caribbean, Europe, Mexico and Latin 

America;

• A robust new U.S. gateway to Brazil and Sao Paulo at Philadelphia, from 

which US Airways operates more than 450 daily departures to 117 

destinations in the United States and throughout the world;

• Daily year-round Sao Paulo connections at Philadelphia to 65 U.S. cities 

southbound, and 61 U.S. cities northbound;

• Daily year-round Sao Paulo connections at Charlotte to as many as 87 U.S. 

cities southbound, and 97 U.S. cities northbound;

 22 2007/2008 U.S.-Colombia Combination Frequency Allocation Proceeding, Order 2008-3-4, Docket DOT-OST2007-0006, March 5, 2008, p.13

23 Application of US Airways, Inc. for an Exemption and Frequency Allocation, Docket DOT-OST-2013-0046, 

March 4, 2013, pp.2-3
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• Service provided with Airbus A330-200 aircraft, US Airways’ newest, with two 

classes of service, including Envoy class with fully lie-flat seats; and

• An expansion of consumer choice from behind-gateway cities throughout the 

United States.

US Airways would achieve all these benefits with just 14 frequencies.

 

VI. Conclusion

By approving US Airways’ application, the Department can provide travelers 

and communities compelling new service options between the U.S. and Brazil, 

provided by a carrier with the network and hub scope necessary to best serve the 

needs of the traveling and shipping public. US Airways’ proposal offers (i) new and 

continuing daily service on two routes by a carrier with the fewest frequencies of any 

incumbent carrier; (ii) two attractive new U.S. gateways to Sao Paulo; (iii) service to 

Sao Paulo—the most populous Brazilian city—from Charlotte and Philadelphia, US 

Airways’ largest hubs; (iv) connections at Charlotte to approximately 90 U.S. cities, 

and at Philadelphia to over 60 U.S. cities; (v) enhanced intergateway competition for 

connecting passengers, notably to Atlanta, Newark, and Washington-Dulles; and (vi) 

wide-bodied A330-200 aircraft configured in two classes, including US Airways’ 

Envoy Suites. Only US Airways’ proposal offers this unique and compelling 

combination of benefits.
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WHEREFORE, US Airways, Inc. respectfully requests that the Department of 

Transportation grant it an exemption and frequencies as more fully explained herein, 

and grant such other or further relief as the Department deems necessary and 

appropriate.

Respectfully submitted,

_______________________________

Howard Kass

Vice President, Legal and Government 

Affairs

Benjamin T. Slocum

Director, Legal and Government Affairs

US Airways, Inc.

1401 H Street, NW, Suite 1075

Washington, DC 20005

(202) 326-5153

howard.kass@usairways.com

benjamin.slocum@usairways.com

DATED: April 24, 2013
RESPONSE TO EVIDENCE REQUEST

1. Provide a firm date for instituting service, and single-plane and non-stop 

connecting schedules proposed to be operated in the applicable base year 

with a break-down for peak and off-peak seasons. Identify all seasonal 

service, if any, and specify the period during which the seasonal services 

would be offered.

Proposed schedules should contain flight numbers, complete routings from 

origin to destination (including behind-gateway and beyond-gateway points 

and elapsed time for services), airports served, departure and arrival times, 

equipment types (including seat configuration by class of service), days 

scheduled, and classes of service offered.

2. A brief description of the types of service the applicant currently provides, if 

any, between the United States and Brazil, including the types of service 

(state whether the services are code-share operations, seasonal or yearround, charter, and/or scheduled) and include frequency levels and type 

(restricted or unrestricted) by city-pair market.

3. If the carrier seeks an award for both the October 2013 and October 2014 

frequencies and/or seeks authority to serve more than one city-pair market, 

indicate the carrier’s order of preference for selection. Also provide, for each 

city-pair market request, the minimum number of frequencies that the carrier 

would accept to institute service.

4. Should the Department decide to make backup awards in this proceeding, 

provide a statement as to whether the carrier will accept backup authority 

with a condition that (a) permits it to implement the authority within the first 

year should the primary carrier withdraw from the market; and (b) should the 

authority not be activated, the authority expires at the end of one year.
1. Provide a firm date for instituting service, and single-plane and nonstop connecting schedules proposed to be operated in the applicable 

base year with a break-down for peak and off-peak seasons. Identify all 

seasonal service, if any, and specify the period during which the 

seasonal services would be offered.

Proposed schedules should contain flight numbers, complete routings 

from origin to destination (including behind-gateway and beyondgateway points and elapsed time for services), airports served, 

departure and arrival times, equipment types (including seat 

configuration by class of service), days scheduled, and classes of 

service offered.

Proposed Start Date

Charlotte-Sao Paulo

US Airways will commence Charlotte-Sao Paulo daily service on June 8, 2013, 

utilizing seven frequencies leased currently from another carrier. The lease will 

expire on October 25, 2014. To maintain this service without interruption beyond 

the expiration of the lease and before full open skies is implemented on October 1, 

2015, US Airways requires an allocation of seven unrestricted frequencies available 

October 1, 2014.

Philadelphia-Sao Paulo

US Airways will commence Philadelphia-Sao Paulo daily service on October 1, 

2014, or later upon its receipt of all necessary approvals from the U.S. and 

Brazilian authorities. US Airways will accept any reasonable condition requiring 

that it institute service by a date certain.

Type of Service

US Airways will operate year-round daily nonstop scheduled combination 

service between Charlotte-Sao Paulo and Philadelphia-Sao Paulo.
Schedules

Charlotte-Sao Paulo

US Airways’ Charlotte-Sao Paulo flights will be operated initially with B767-200 

aircraft seating a total of 200 passengers in two classes, with 17 First/Envoy Class 

and 183 coach class seats (four crew rest seats not included). This aircraft’s cargo 

capacity ranges from 5,660 to 9,480 lbs. in the winter; and from 10,195 to 10,290 

lbs. in the summer. Beginning October 27, 2013, US Airways will substitute a 

larger, newer A330-200 aircraft on this route. US Airways’ A330-200 aircraft seats 

a total of 253 passengers in two classes, with 19 First/Envoy Class and 234 coach 

class seats (five crew rest seats not included). Its cargo capacity ranges from 

41,380 to 75,461 lbs. in the winter, and from 42,670 to 80,845lbs. in the summer.

US Airways has on hand and operates B767-200 and A330-200 aircraft. 

Both aircraft types have been used successfully for US Airways’ Charlotte-Rio de 

Janeiro service, and they comply with all applicable FAA requirements.

US Airways’ Charlotte-Sao Paulo schedules are set forth below.

Schedules

Summer Schedule

(effective June 8, 2013)

Flight Origin

Departure

Time Destination

Arrival 

Time Equipment

Block 

Hours Frequency

Time 

Difference

802 CLT 1750 GRU 0430+1 B767-200 9:40 Daily +1 hr

803 GRU 0825 CLT 1725 B767-200 10:00 Daily -1 hr

US Airways is working with Brazilian authorities to improve its Summer Schedule, which is expected 

to occur in late October 2013.
Winter Schedule

(effective November 2013)

Flight Origin

Departure 

Time Destination

Arrival 

Time Equipment

Block 

Hours Frequency

Time 

Difference

802 CLT 2030 GRU 0900+1 A330-200 9:30 Daily +3 hrs

803 GRU 0045 CLT 0745 A330-200 10:00 Daily -3 hrs

Winter Schedule assumes US Airways is able to work with the Brazilian authorities to remove the 

GRU infrastructure constraints that currently prevent overnight service in both directions.

US Airways will obtain fuel through normal channels used currently to supply 

fuel to US Airways for its domestic and international operations. US Airways has 

confirmed with its current fuel suppliers that sufficient fuel will be available to US 

Airways for its Charlotte-Sao Paulo service. 

US Airways’ fuel consumption statistics are set forth below.

Projected Fuel Burn

(Twelve months ending October 1, 2015)

Charlotte-Sao Paulo Daily Roundtrip: 10.5 million gals/year (B767-200) or 12.5 

million gals/year (A330-200)
Philadelphia-Sao Paulo

US Airways’ Philadelphia-Sao Paulo flights will be operated with Airbus A330-200 

aircraft seating a total of 253 passengers in two classes, with 19 First/Envoy Class 

and 234 coach class seats. This aircraft’s cargo capacity ranges from 41,380 to 

68,560 lbs. in the winter, and 42,670 to 76, 142 lbs. in the summer.

US Airways has on hand and operates Airbus A330-200 aircraft. These 

aircraft are the largest and newest in US Airways’ fleet, and offer passengers the 

benefits of lie-flat beds in Envoy Class, comfortable leather seats in coach class, 

and on-demand personal entertainment. US Airways’ A330-200 aircraft comply 

with all applicable FAA requirements.

US Airways’ proposed Philadelphia-Sao Paulo schedules are set forth 

below.

Proposed Schedules

Summer Schedule

Flight Origin

Departure

Time Destination

Arrival 

Time Equipment

Block 

Hours Frequency

Time 

Difference

804 PHL 2100 GRU 0740+1 A330-200 9:40 Daily +1 hr

805 GRU 2235 PHL 0740+1 A330-200 10:05 Daily -1 hr

Winter Schedule

Flight Origin

Departure 

Time Destination

Arrival 

Time Equipment

Block 

Hours Frequency

Time 

Difference

804 PHL 2100 GRU 0945+1 A330-200 9:45 Daily +3 hrs

805 GRU 0020 PHL 0740 A330-200 10:20 Daily -3 hrs
US Airways will obtain fuel through normal channels used currently to supply 

fuel to US Airways for its domestic and international operations. US Airways has 

confirmed with its current fuel suppliers that sufficient fuel will be available to US 

Airways for its Philadelphia-Sao Paulo service. 

US Airways’ fuel consumption statistics are set forth below.

Projected Fuel Burn

(Twelve months ending October 1, 2015)

Philadelphia-Sao Paulo Daily Roundtrip (A330-200): 12.6 million gals/year
2. A brief description of the types of service the applicant currently 

provides, if any, between the United States and Brazil, including the 

types of service (state whether the services are code-share operations, 

seasonal or year-round, charter, and/or scheduled) and include 

frequency levels and type (restricted or unrestricted) by city-pair 

market.

US Airways currently operates with its aircraft daily scheduled combination 

service between Charlotte and Rio de Janeiro. This service is operated year-round 

using frequencies awarded to US Airways by the Department in April 2009 by 

Order 2009-4-6. These frequencies may be used to serve any Brazilian point other 

than GRU until infrastructure-related constraints at GRU are removed (bilateral 

Type 1D frequencies).

US Airways currently leases from United seven unrestricted frequencies 

(bilateral Type 1A). These frequencies will be used by US Airways to commence 

new daily scheduled combination service between Charlotte and Sao Paulo (GRU) 

on June 8, 2013. This service will be operated year-round. US Airways’ lease with 

United will expire October 25, 2014, requiring the return of the frequencies to 

United. To continue its Charlotte-Sao Paulo service in operation beyond October 

25, 2014, US Airways requires an allocation of seven unrestricted frequencies 

available October 1, 2014.

US Airways currently places its two-letter designator code on flights 

operated by United in the Washington, D.C.-Dulles-Sao Paulo, Chicago-Sao Paulo 

and Sao Paulo-Rio de Janeiro markets.

US Airways also has a codeshare agreement in place with TAM-Linhas 

Aereas S.A. However, this codeshare arrangement pertains only to intra-Brazil 
flights operated by TAM. US Airways does not codeshare on TAM’s Brazil-U.S. or 

Brazil-third country flights, nor does TAM codeshare on any flights operated by US 

Airways. US Airways holds no ownership interest in TAM or any other Brazilian 

carrier and does not benefit from any frequency or slot holdings of any Brazilian 

carrier.
3. If the carrier seeks an award for both the October 2013 and October 

2014 frequencies and/or seeks authority to serve more than one citypair market, indicate the carrier’s order of preference for selection. 

Also provide, for each city-pair market request, the minimum number 

of frequencies that the carrier would accept to institute service.

Charlotte-Sao Paulo

US Airways will commence Charlotte-Sao Paulo daily nonstop roundtrip flights on 

June 8, 2013. To operate these flights, US Airways will utilize seven combination 

frequencies leased currently from another carrier. However, the lease term will 

expire on October 25, 2014, prior to the implementation of full open skies on 

October 1, 2015. To maintain its Charlotte-Sao Paulo service during this interim 

period, US Airways requires no fewer than seven unrestricted combination 

frequencies available October 1, 2014.

Philadelphia-Sao Paulo

US Airways’ service proposal is premised upon the operation of daily nonstop 

roundtrip flights between Philadelphia and Sao Paulo, which is the minimum 

necessary to offer commercially attractive and competitive service. To offer this 

service, US Airways requires no fewer than seven unrestricted combination 

frequencies available October 1, 2014, permitting it to operate to Sao Paulo.

If US Airways were only awarded seven of the fourteen unrestricted 

frequencies available October 1, 2014, US Airways would use these frequencies to 

ensure the uninterrupted operation of its Charlotte-Sao Paulo service.
4. Should the Department decide to make backup awards in this 

proceeding, provide a statement as to whether the carrier will accept 

backup authority with a condition that (a) permits it to implement the 

authority within the first year should the primary carrier withdraw from 

the market; and (b) should the authority not be activated, the authority 

expires at the end of one year.

Should the Department award backup authority to US Airways, it agrees to 

accept conditions (a) and (b). 
ANNEX A
ANNEX B
ANNEX C



ANNEX D

ANNEX E
ANNEX F
ANNEX G


ANNEX H

ANNEX I
CERTIFICATE OF SERVICE

I hereby certify that on April 24, 2013, a copy of the Supplement of US 

Airways, Inc. was served via e-mail on each of the following:

urskr@state.gov (Department of State)

paul.gretch@dot.gov (Department of Transportation)

esta.rosenberg@dot.gov (Department of Transportation)

brett.kruger@dot.gov (Department of Transportation)

brian.hedberg@dot.gov (Department of Transportation)

francis.heil@aa.com (American)

robert.wirick@aa.com (American)

steve.morrissey@united.com (United)

dan.weiss@united.com (United)

richa.himani@united.com (United)

karine.faden@united.com (United)

sascha.vanderbellen@delta.com (Delta)

mark.gale@phl.org (Philadelphia International Airport)

tjorr@charlotteairport.com (Charlotte Douglas International Airport)

________________________

Benjamin T. Slocum